daiichi-acquires-controlling-stake-in-ranbaxy

Daiichi acquires controlling stake in Ranbaxy

The Japanese buyer aims to increase its initial stake in IndiaÆs largest pharmaceutical company to 50.1% for a total outlay of up to $4.6 billion.
June 11, 2008
Japanese pharmaceutical major Daiichi Sankyo will acquire a controlling interest in IndiaÆs largest pharmaceutical company Ranbaxy Laboratories at a price that values the Indian company at $8.5 billion.

The founders and controlling shareholders of Ranbaxy, the Singh family, have agreed to sell their 34.8% interest to Daiichi Sankyo at a price of Rs737 $17.17 a share. The deal, which also involves the issue of new shares and warrants to Daiichi, will precipitate an open offer to other shareholders in Ranbaxy, in accordance with regulatory guidelines in India, for up to 20% more shares at the same price.

The agreed price of Rs737 represents a premium of 53.5% to RanbaxyÆs average daily closing price on the...
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